How to Finance a Law Firm Acquisition: A Complete Guide

Acquiring a legal practice — whether through a partner buyout, a full acquisition, or a merger — represents one of the most significant financial decisions a law firm can make. The right acquisition can transform your practice, expanding your client base, geographic reach, and practice areas overnight.

Common Acquisition Scenarios

The most frequent scenario we see is the partner buyout: a founding or senior partner decides to retire, and the remaining partners need capital to acquire their equity stake. This often happens on tight timelines, as succession planning can be delayed until the last moment.

Other common scenarios include acquiring a competitor's practice or client book, merging with a complementary firm for scale, or purchasing a retiring sole practitioner's established caseload.

"The best acquisition opportunities don't wait for banks to complete 8-week underwriting cycles. Speed and certainty of funding often determine who wins the deal."

How Acquisition Financing Differs

Traditional lenders often struggle with law firm acquisitions because they only evaluate your firm in isolation. They don't account for the combined revenue potential of the merged entity. Specialist legal finance providers underwrite based on the full picture: your firm's current performance plus the projected value of the acquisition.

This means deals that traditional lenders won't touch can often be approved through specialist channels. Repayment is typically structured around the merged entity's projected revenue, so the acquisition pays for itself as it generates returns.